Discontinuance or settlement
In plain English: Protects members when a derivative lawsuit is ended or settled. Such a proceeding cannot be discontinued or settled without the court's approval, and if the court finds the outcome would substantially affect the interests of the members or a class of members, it will direct that notice be given to those affected members.
No derivative proceeding may be discontinued or settled without the court's approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation's members or a class of members, the court shall direct that notice be given to the affected members.